For which product is the income elasticity of demand most likely to be negative?

Question

For which product is the income elasticity of demand most likely to be negative?           

      computer software
                                        used clothing
                                        basketballs
                                        bread
              

              

An income tax may be called regressive when the:                                                           average tax rate increases as income increases.
                                        average tax rate decreases as income increases.
                                        average tax rate remains the same as income increases.
                                        marginal tax rate remains the same as income increases.

Explanation / Answer

a)Used clothing

b)An income tax may be called regressive when the average tax rate increases as income increases

c)To economists, the main differences between "the short run" and "the long run" are that in the short run all resources are fixed, while in the long run all resources are variable.

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